Registrar-Generals-Department-Annual-report-1965-1966 — Page 20

41. The premium chargeable for a regrant is calculated according to the area and location of the lot, the user and development restrictions placed upon it, and the length of the existing term, if any, still to run. In certain cases defined in a Government announcement made in October 1960 regrant premiums may be paid by up to 21 equal annual instalments incorporating interest at 10% per annum, but with certain exceptions specified in a further announcement in June 1962, the entire balance of premium has to be paid in the event of an assignment or any other type of dealing specified in the announcements. Of the 47 regrants made during the year, 2 were made with premiums of less than $100,000, 36 with premiums of between $100,000 and $500,000, and 9 with premiums of more than $500,000. The total of these premiums and modes of payment were as follows:

No.

Total Premium

By lump sum

13

$ 3,797,419

...

By instalments under the pre-October 1960

terms

4

8,789,072

By instalments under the October 1960

terms

30

10,471,069

47

$23,057,560

42. Although as stated in paragraph 34 the practice of issuing 75- year leases renewable for a further 75 years was not instituted until 1898, there are a few cases where owing to a right of renewal having been engrafted on to an original non-renewable 75-year lease as part of conditions of modification of a lease or of extension to a lot, the original term either has already expired or is due to expire shortly. The renewal clause in the lease provides that on the expiration of the original term a new lease will be granted 'at such Rent as shall be fairly and impartially fixed by the Director of Public Works as the fair and reason- able rental value of the ground at the date of such renewal'. The Director of Public Works, in accordance with legal advice, has calculated the new Crown Rent according to the full market value of the land (excluding buildings), subject to the user and development conditions imposed by the lease, at the date of renewal. The re-assessed Crown Rent is therefore computed on the basis of such full market value decapitalized over the new term of 75 years, at 5% per annum, with an addition made in respect of the zone Crown Rent applicable to the district in which the lot is situated.

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